I. TITLE OF THE INVESTIGATION STUDY
"INTEGRAL AUDIT: EFFECTIVE INSTRUMENT TO VERIFY THE 3" E "OF THE INSTITUTIONAL MANAGEMENT OF THE INC"
II. AUTHOR'S NAME
III. PLACE WHERE THE THESIS WILL BE DEVELOPED
LIMA PERU
IV. PROJECT DESCRIPTION
4.1 BIBLIOGRAPHIC BACKGROUND
Jorge Alejandro Sánchez Henríquez, Chilean Public Accountant, at the XXIII Inter-American Accounting Conference; He said: "The comprehensive audit provides us with an excellent tool to better position ourselves in front of our clients, suppliers, creditors and even our competition and at the same time it gives us greater possibilities to provide added value to the work of the contemporary auditor."
Armando Miguel Casal and Mario Wainstein, at the XXIII Inter-American Accounting Conference, agreed when indicating that the integral audit is a complete control model of the management of an entity, including its environment.
Miguel H. Bravo Cervantes, in his book: Comprehensive Audit. It mentions that "Comprehensive Audit is the comprehensive, methodological, objective, systematic, analytical and independent examination and evaluation with respect to the performance of a company, its operational processes, as well as the application and adaptation of its resources and its administration, carried out by professionals, with the purpose of issuing a report, to formulate recommendations contributing to the optimization of the economy, efficiency, effectiveness and compliance of business management ”. The following objectives of the integral audit stand out: i) Evaluate the company in all its areas; ii) Obtain knowledge of the performance of business management; iii) Evaluate the efficiency and degree of reliability of administrative, legal, accounting, financial, economic, labor, etc information;iv) Examine achievement of objectives; v) Assist the leadership and management for greater effectiveness and productivity of operations; and, vi) Make recommendations that include their respective follow-up.
Luis García Haro, in his thesis presented to choose the Master's Degree at the Federico Villarreal National University: "COMPREHENSIVE AUDIT: AN EFFECTIVE RESPONSE TO FIGHT AGAINST FRAUD AND CORRUPTION IN REGIONAL GOVERNMENTS", refers to philosophy, doctrine, standards, process, procedures, techniques and practices that the comprehensive audit must follow so that it becomes an effective response to fight effectively against acts of corruption in regional governments.
Juan Héctor Bendezú Iriarte, thesis to choose the degree of Master in Administration at the Federico Villarreal National University: “THE MANAGEMENT AUDIT IN THE MODERN COMPANY”. The author in this thesis develops the management audit process, first treating the evaluation of the internal control system, which will be extremely useful for this research work
Carlos Sandoval Aliaga, Thesis: The Comprehensive Audit, a tool to efficiently manage electricity companies; document presented to opt for the Doctor of Accounting Degree at the Universidad Nacional Federico Villarreal. This document highlights the importance of applying comprehensive auditing as a way of exercising adequate control over activities and therefore facilitating the tactical and strategic management of these companies, within the framework of globalization and business competitiveness.
4.2. DELIMITATION OF THE INVESTIGATION
This investigation will be delimited as follows so that it can meet the objectives of the investigation:
1. SPACE DELIMITATION
This research includes the National Institute of Culture, dependencies, activities, functions, processes and procedures.
2. TEMPORARY DELIMITATION
This research will include the past, present and future of the National Institute of Culture: From the past and the present, the regulations and the way in which this entity has been managed and controlled are obtained. Basically, the work will be future-oriented, since comprehensive auditing is a professional activity that has not yet been regularly applied in our country.
3. SOCIAL DELIMITATION
As part of the investigation, relations will be established with the authorities, officials and workers of the National Institute of Culture, who know and live the legal experiences, decisions and execution of the activities entrusted to this level of State management; therefore they will say to what extent they know the integral audit and the form as it could affect the control and therefore in the management; In addition, the participation of specialists from the Metropolitan Lima Audit Societies and Audit teaching staff from Public and Private Universities will be considered, who with their experience and knowledge about auditing will give us their contributions to adequately relate to comprehensive auditing and management. There are university teachers,that for more than forty years of their lives have been dedicated to conducting audits in the private and government sectors, therefore these people are an extraordinary source for our work.
4. CONCEPTUAL DELIMITATION
The main concepts that will be developed are given by the variables that the research work will use:
(1) National Institute of Culture.
(2) Comprehensive audit
(3) Economy
(4) Efficiency
(5) Efficacy
(6) Transparency
(7) Institutional management
4.3. PROBLEM STATEMENT
Article 21 of the Political Constitution of the State establishes that archaeological sites and remains, constructions, monuments, places, bibliographic and archive documents, artistic objects and testimonies of historical value, expressly declared cultural property, and provisionally those that are presumed as Such are the cultural heritage of the Nation, regardless of their status as private or public property and therefore are protected by the State. In addition, it establishes that the law guarantees the ownership of said heritage. In accordance with the law, it fosters private participation in its conservation, restoration, exhibition and dissemination, as well as its restitution to the country when it has been illegally transferred outside the national territory.
The Political Constitution does not establish which sector or specifically which entity will be in charge of the administration of the Cultural Heritage of the Nation.
Decree Law No. 25762- Organic Law of the Ministry of Education, in its article 12, establishes that the Decentralized Public Organizations (OPD) of the Sector are: National Institute of Culture (INC), Peruvian Institute of Sport (IPD), National Library (BN), National Council of Science and Technology (CONCYTEC), Geophysical Institute of Peru (IGP), National Institute of Scholarships and Educational Credit (INABEC). According to this norm, it is not the main function of the sector to administer, protect and control the Cultural Heritage of the Nation; if not, this is entrusted to a decentralized body, that is, it is a complementary entity.
Article 13 of Decree Law No. 25762, establishes that the purpose of the National Institute of Culture is to carry out activities and actions at the national level in the field of culture, regulate, supervise and evaluate the country's cultural policy and to administer, preserve and protect the cultural heritage of the nation. The National Institute of Culture is the governing and central organ of the National System of Museums and, as such, is responsible for promoting the integration, promotion, support, development and dissemination of the various cultural manifestations and creations, with the purpose of promoting the consolidation, cultural, local, regional and national identity; administer, preserve and protect the cultural heritage of the nation.
Although it is true the INC has policies, processes and procedures to carry out the entrusted role; however, said policies lack implementation because each government realizes what is convenient for them according to their interests, which affects institutionality and projection over time. On the other hand, despite great efforts, insufficient resources have not allowed for adequate administration, conservation and protection of the Cultural Heritage of the Nation. The INC, faces lack of economy, deficiency and ineffectiveness in relation to the promotion, integration, promotion, support, development and diffusion of the manifestations and cultural creations; All these aspects come together so that there is no consolidation and cultural identity that our country needs.
Law No. 28296 is the General Law of the Cultural Heritage of the Nation, it establishes the national policies of defense, protection, promotion, ownership and legal regime and the destination of the assets that constitute the Cultural Heritage of the Nation. These policies are not complied with in all their dimensions because both the internal and external controls carried out do not identify the lack of protection that exists over many assets; Likewise, the responsibility in the lack of promotion of the assets that constitute the Cultural Heritage of the Nation are not identified.
Article 19 of Law 28296 establishes that the Organisms competent to specify the policies on the Cultural Heritage of the Nation are the National Institute of Culture, the National Library and the General Archive of the Nation, which are in charge of the identification, inventory, registration, registration, investigation, protection, conservation, diffusion and promotion of the assets that are part of the Cultural Heritage of the Nation within its competence. In this part, it has been determined that the examinations carried out have not identified overlaps, interference and deficiencies in the functions that correspond to these three organizations, which does not facilitate the economy, efficiency, effectiveness and transparency of the management of each one and especially from the National Institute of Culture.
The cultural heritage of Peru is made up of all the tangible and intangible assets that, due to their historical, archaeological, artistic, architectural, paleontological, ethnological, documentary, bibliographic, scientific or technical value, have a relevant importance for the identity and permanence of the nation. through time. It is for all this that these assets require special protection and defense, so that they can be enjoyed, valued and used appropriately by all citizens and transmitted in the best possible way to our future generations. It is known from complaints from some INC workers, from the press and from other sources that there are thefts of property, irregular sale of property, impersonation of property,Incomplete recoveries and other totally illegal events that affect the heritage that have not been detected by audits other than comprehensive and that therefore do not facilitate the economy, efficiency, effectiveness and transparency of institutional management.
The internal audit, the financial audit, the management audit and the special exams that have been applied in the National Institute of Culture are not providing the elements that the institution needs to verify the economy, efficiency, effectiveness and transparency of the management of the Cultural Heritage of the Nation; because each type of audit refers to a particular aspect, but does not examine, much less reports on all the institutional events. All this coupled with a kind of levels of corruption that are not identified by the aforementioned audits, makes the way for using a more complete control instrument.
In the National Institute of Culture, as in any public and private entity, it is necessary to adopt a severe policy at the same time fair and determined so as not to tolerate the fraudulent and corrupt behavior of managers, officials and workers. The aforementioned audits do not present proposals for the design and implementation of a series of procedures, techniques and practices, some of a general nature and others specific that limit fraud and corruption.
On the other hand, it has been observed that the audit teams, of the aforementioned types, have been adopting a lukewarm attitude towards the illegal acts of managers, officials and workers at the government levels, probably not to compromise and maintain harmonious relationship with its government clients, even if it is fictitious.
Non-comprehensive audits do not have mechanisms for the independent auditor in the professional exercise to verify the economy, efficiency, effectiveness and transparency of institutional management; as well as to identify, errors, fraud, illegal acts, embezzlement and in general other acts that could be directly linked to corruption.
GENERAL PROBLEM:
What aspects should be considered in the comprehensive audit process, so that this professional tool becomes the effective instrument to verify the economy, efficiency, effectiveness and transparency of institutional management?
SPECIFIC PROBLEMS:
1. How should the comprehensive audit process and procedures be structured, so that it contributes to the economy, efficiency, effectiveness and transparency of institutional management?
2. What control activities does the comprehensive audit recommend to verify the economy, efficiency, effectiveness and transparency of institutional management?
4.4. THEORETICAL FRAMEWORK
NATIONAL INSTITUTE OF CULTURE:
The National Institute of Culture is a Decentralized Public Organism dependent on the Ministry of Education, with legal status, of internal public law and with technical, administrative, economic and financial autonomy. It constitutes the governing and central entity of the organs that make up its organic structure, including the twenty-four decentralized organs, and is responsible for executing the State's policy on cultural matters.
The purpose of the INC is to affirm the National Identity through the decentralized execution of actions of protection, conservation and promotion, enhancement and dissemination of the heritage and cultural manifestations of the Nation to contribute to national development with the active participation of the community and public and private sectors.
Among its functions is formulating and executing State policies and strategies in the area of cultural development, defense, conservation, dissemination and research of the Cultural Heritage of the Nation (Law No. 28296) and with Supreme Decree No. 50-94 -ED, INC Organization and Functions Regulation.
The cultural heritagePeru is made up of all the tangible and intangible assets that, due to their historical, archaeological, artistic, architectural, paleontological, ethnological, documentary, bibliographic, scientific or technical value, have a relevant importance for the identity and permanence of the nation through weather. It is for all this that these assets require special protection and defense, so that they can be enjoyed, valued and used appropriately by all citizens and transmitted in the best possible way to our future generations. Our cultural heritage is very vast and diverse; protecting it is everyone's duty and right. However, to ensure its conservation, the participation of specialists in various fields is essential. Seeking to facilitate its study and conservation,Cultural heritage has been divided into different categories:
Immovable material heritage: refers to cultural assets that cannot be moved and covers both archaeological sites (huacas, cemeteries, temples, caves, platforms) and colonial and republican buildings.
Movable material heritage: includes all cultural assets that can be moved from one place to another, that is, objects such as paintings, ceramics, goldsmiths, furniture, sculptures, coins, books, documents and textiles, among others.
Depending on the era in which it was created, movable heritage as a property is divided into two broad categories: archaeological heritage, which are basically cultural assets from pre-Hispanic times; and historical heritage, which are those dated from the arrival of the Spanish.
Intangible heritage: refers to what we call living culture, such as folklore, traditional medicine, folk art, legends, typical cuisine, ceremonies and customs, etc. These are the uses, representations, expressions, knowledge and techniques associated with the instruments, objects, artifacts and cultural spaces that are their own, which are transmitted from generation to generation, often by voice or through practical demonstrations.
Underwater cultural heritage: they are all vestiges of human existence with a cultural, historical and archaeological character, which have been totally or partially submerged in water, periodically or continuously, for at least 100 years.
Industrial heritage: refers to all real and personal property acquired or produced by a company in relation to its industrial activities of acquisition, production or transformation; to all the products generated from these activities, and to the related documentary material.
Documentary heritage: as its name indicates, it basically refers to the documentation that is kept in archives and similar institutions. Bibliographic heritage, in turn, refers to books, newspapers, magazines and other printed material, kept mainly in libraries. Although in the strictest sense of the word refers to documents and texts printed on paper, with new technology we also consider recordings, digital media, audiovisual media and others as documents.
COMPREHENSIVE AUDIT:
The comprehensive audit, according to Canevaro (2004) and Hernández (2002), includes the study and evaluation of operations or transactions, in our case of the Regional Government, in order to validate the different systems that govern: administrative, operational, accounting, management and computerized information, through an appropriate methodology that allows the preparation of work certificates as evidence, including the use of techniques that allow for a logical and coherent order necessary for its review, supervision, continuity of the audit work and for that support your opinion.
According to the authors, the comprehensive audit is based on the following principles: independence, objectivity, permanence, comprehensiveness, opportunity, certification and compliance with regulations.
The phases of comprehensive audit work are planning, execution, and reporting. In addition, advice and monitoring.
The scope of the comprehensive audit considers the administrative and control systems, risk identification, operations and results, financial information, management performance, and compliance and regulation.
The objective of the comprehensive audit is to maximize benefits, staff development, maximize income, increase competitiveness and promote growth. We share the authors' opinion, when they establish that the comprehensive audit is not the sum of audits. Rather, it is a model of global coverage and, therefore, it is not a sum of audits, but the best result of a joint evaluation. Comprehensive audit work is based on International Auditing Standards, Generally Accepted Auditing Standards, Government Auditing Standards, Technical Standards of Internal Control for the Public Sector, Government Auditing Manual and others.
Canevaro (2004), Bravo (2000) and Blanco (2001) and other authors coincide in establishing that the comprehensive audit process includes: Planning, Development of the planned (execution); Completion of work and report; and, in addition to the basic functions, the advisory function and the monitoring or follow-up function must be considered.
Planning, Includes: General planning; Detail or specific planning; and, Identification of procedures.
The execution of the audit includes: Execution of audit programs; Application of audit procedures, techniques and practices; Comparison of the evidence obtained in the working papers with the criteria of the comprehensive audit; and, Definition of findings, if applicable.
The report phase includes the Introduction, Scope, Intermediate paragraphs (exceptions to the financial statements, observations to management, observations to compliance with legal regulations, etc…)
According to Hernández (2002), in addition to the traditional process mentioned above; The following phases should be considered: Provision of specialized advice on matters of institutional control; and, Follow-up, supervision or minotoreo of the recommendations made
According to the International Standards on Auditing, the auditor must apply analytical procedures in the planning and global review stages of the audit. Analytical procedures can also be applied at other stages.
Analytical procedures mean the analysis of significant indices and trends including investigation resulting from fluctuations and relationships that are inconsistent with other relevant information or deviate from the forecast amounts. Analytical procedures include consideration of comparisons of entity information. Analytical procedures also include consideration of relationships. Various methods can be used to execute the procedures. These range from simple comparisons to complex analyzes using advanced statistical techniques. Analytical procedures can be applied to consolidated financial statements, component financial statements, and individual elements of financial information. The selection of procedures,methods and level of application determined by the auditor is a matter of professional judgment.
In the development of the comprehensive audit, the application of the following verification techniques must be weighed: ocular; Oral or verbal; Written; Documentary film; and, physical. Among these general techniques, specific techniques and practices should be considered to obtain the evidence that supports the Auditor's Report.
Traditionally, the idea that auditing is a part of accounting has been expounded and consequently, its approach towards financial auditing has been skewed. The audit should be understood as a methodological standard, to evaluate different objects or realities, with a critical, analytical and investigative mindset, on an objective and independent and ethical basis, aimed at issuing a report as a final product. To the traditional process of planning the audit, execution and formulation of the report; Other functions are currently being added to give added value to the work of the comprehensive audit. The comprehensive audit in its modern version, is advisory to senior management for the purposes of timely and adequately implementing the internal and external control system and printing in this way,reliability in financial, economic, tax, administrative, logistics, etc. information, in relation to the accuracy, efficiency, effectiveness and economicity of institutional operations. Another function that is necessary to carry out in the framework of the Coso Report is the supervision, follow-up or monitoring of the internal control systems, evaluating the quality of their performance. This monitoring will take the form of continuous supervision activities, periodic evaluations or a combination of the two previous ones.follow-up or monitoring of internal control systems, evaluating the quality of their performance. This monitoring will take the form of continuous supervision activities, periodic evaluations or a combination of the two previous ones.follow-up or monitoring of internal control systems, evaluating the quality of their performance. This monitoring will take the form of continuous supervision activities, periodic evaluations or a combination of the two previous ones.
Fraud and corruption are not recent issues, they are forever issues. They are current issues. The fight against these scourges is clamored for by every conscious and honest community. Fraud and corruption are enemies of development. Modernly, comprehensive auditing does not base the efficiency of its work on the discovery of fraud or acts of corruption that may be occurring in the audited entities. It is sufficient that the audit work is developed based on the auditing standards accepted by the community of auditors, at an international level, so that it can be trusted by those who make use of the audited information. However, it is precisely the comprehensive audit, which strictly speaking tends to discover the majority of frauds or acts of corruption of the audited entities,even though this is not exclusively its objective.
EFFICIENCY, EFFECTIVENESS, ECONOMY AND TRANSPARENCY:
When those responsible for management are concerned with doing things correctly, they are going through EFFICIENCY (adequate use of available resources) and when they use instruments to evaluate the achievement of results, to verify things well done, they are the ones that actually they had to be carried out, then it is directed towards EFFECTIVENESS (achievement of the objectives through the available resources) and when it seeks the best costs and greatest benefits it is within the framework of ECONOMY. Efficiency, effectiveness and economy do not always go hand in hand, since an entity can be efficient in its operations, but not effective, or vice versa; it can be inefficient in its operations and yet be effective, although it would be much more advantageous if efficiency were accompanied by efficiency.It can also happen that it is neither efficient nor effective
INSTITUTIONAL EFFICIENCY:
According to Hernández (2000), efficiency is the positive result after adequate rationalization of resources, in accordance with the purpose sought by those responsible for management.
According to the MAGU, efficiency refers to the relationship between the goods or services produced or delivered and the resources used for that purpose (productivity), compared to an established performance standard.
Entities can guarantee their permanence in the market if they strive to carry out efficient business management, customer-oriented and with a sustained level of quality in the products and / or services it provides.
Efficiency can be measured in terms of results divided by total costs and it is possible to say that efficiency has grown a certain percentage (%) per year. This measure of cost efficiency can also be inverted (total cost relative to the number of products) to obtain the unit cost of production. This ratio shows the production cost of each product. In the same way, the time (calculated, for example, in terms of man hours) that it takes to produce a product (the inverse of work efficiency) is a common measure of efficiency.
Efficiency is the relationship between results in terms of goods, services and other results and the resources used to produce them. Empirically, there are two important measures: i) Cost efficiency, where results are related to costs, and, ii) work efficiency, where achievements refer to a key production factor: the number of workers.
If an auditor intends to measure efficiency, the audit should begin by analyzing the entity's main types of results / outputs. The auditor could also analyze the results by finding out if the combination of results achieved is reasonable or by verifying the quality of the results.
When we use an efficiency approach for this purpose, the auditor should assess, when analyzing how the program has been executed, how well the company has handled the situation. This means studying the audited company to check how the work has been organized.
Some questions that may be asked in the efficiency analysis are:
a) Were the project feasibility studies realistic and formulated so that operations could be based on them?
b) Could the project have been implemented in a different way so that lower production costs could have been obtained?
c) Are the working methods the most rational?
d) Are there bottlenecks that could have been avoided?
e) Are there unnecessary overlaps in the delegation of responsibilities?
f) How well do different units cooperate to achieve a common goal?
g) Are there any incentives for officials who strive to cut costs and complete work on time?
Efficiency refers to the relationship between the services provided or delivered by entities and the resources used for that purpose (productivity), compared to an established performance standard.
Efficiency is the relationship between costs and benefits focused on finding the best way to do or execute tasks (methods), so that resources (people, vehicles, various supplies and others) are used in the most efficient way. rational possible. Rationality implies adapting the means used to the ends and objectives that are to be achieved, this means efficiency, which leads to the conclusion that companies will be rational if the most efficient means are chosen to achieve the desired objectives, taking into account that the objectives considered are organizational and not individual. Rationality is achieved through rules and regulations that govern the behavior of the components in search of efficiency.
Efficiency seeks to use the most adequate and properly planned and organized means, methods and procedures to ensure optimal use of available resources. Efficiency is not concerned with ends, as efficiency is, if not with means.
Efficiency can be measured by the amount of resources used in the provision of services. Efficiency increases as costs and resources used decrease. It is related to the use of resources to obtain a good or objective.
INSTITUTIONAL EFFECTIVENESS:
Efficiency or effectiveness, refers to the degree to which the entity achieves its objectives and goals or other benefits that it intended to achieve, provided for in legislation or set by the Board of Directors.
If an auditor focuses on effectiveness, he or she should begin by identifying the goals of the entity's programs and by operationalizing the goals to measure effectiveness. You will also need to identify the program's target group and seek answers to questions such as:
a) Has the goal been reached at a reasonable cost and within the established time?
b) Was the target group correctly defined?
c) Are people satisfied with the education and equipment provided?
d) To what extent does the supplied equipment meet the needs of the target group?
e) Is the equipment being used by citizens?
“ Effective management is related to the fulfillment of the actions, policies, goals, objectives, mission and vision of the company; as established by modern business management ”
"Effective management is the process undertaken by one or more people to coordinate the work activities of other people in order to achieve high quality results that a person could not achieve on their own. Competitiveness comes into play in this framework, which is defined as the extent to which a company, under free market conditions, is capable of producing goods and services that pass the market test, while maintaining or expanding real income from your employees and partners. Also in this framework, quality is conceived, which is the totality of the features and characteristics of a product or service that refer to its capacity to satisfy expressed or implicit needs ”
" Effective management is the set of actions that allow obtaining the maximum performance from the activities carried out by the entity"
“ Effective management, which means that the members of an entity work together with greater productivity, that they enjoy their work, that they develop their skills and abilities and that they are good representatives of the company, presents a great challenge for its managers.
When a management reaches the standard below, it can be considered "effective".
Management can be considered effective if: i) The entity's operational objectives are being achieved; ii) They have adequate information to the point of achieving the entity's operational objectives; iii) If the administrative, financial, economic, labor, patrimonial and other information of the entity is reliably prepared; and, iv) If the applicable laws and regulations are complied with.
While institutional management is a process, its effectiveness is a state or condition of the process at a given moment, the same as when exceeding the established standards it facilitates achieving effectiveness.
The determination of whether a management is “effective” or not and its influence on effectiveness, constitutes a subjective stance that results from the analysis of whether the five components of Internal Control of the Report are present and operating effectively: control environment, evaluation risk, control, information and communication and supervision activities. The effective operation of management and control provides a reasonable degree of assurance that one or more of the stated goal categories will be met.
Efficiency or effectiveness refers to the degree to which the entity achieves its objectives and goals or other benefits that it intended to achieve, set by managers or required by society.
Efficiency or effectiveness is the degree to which institutional objectives are achieved. In other words, the way in which a set of results is obtained reflects effectiveness, while the way in which resources are used to achieve them refers to efficiency.
Efficiency is the normative measure of achieving results. The entities have indicators to measure the achievements of the services. When these results or standards are achieved, the objective of good governance applied by this type of entity will have been achieved.
For the entity to achieve effectiveness, it must meet these three basic conditions: Achieve institutional objectives; Perform maintenance of the internal system; and, Adapt to the external environment.
According to Koontz & O´Donnell (1999), the managers of the institutions have a variety of techniques to ensure that the results conform to the plans. The basis of good governance and control of the entity is that the result depends on the people. Among the important considerations to ensure the results and therefore the effectiveness of the managers we have: the will to learn, the acceleration in the preparation of the management team, importance of planning for innovation, evaluation and remuneration of the management team, adjustments of the information, need for managerial research and development, need for intellectual leadership, etc.
The results obtained by effective management should not only occur for the entity itself, but especially should be reflected in better services and in citizen contentment, especially in the participatory context of modern management.
INSTITUTIONAL ECONOMY:
The economy in the use of resources is related to the terms and conditions under which the entity acquires resources, be they financial, human, physical or technological (computerized), obtaining the required quantity, at the reasonable level of quality, in the opportunity and appropriate place and at the lowest possible cost.
If the auditor focuses on economics, it will be important to define expenses correctly. This is often a problem. Sometimes it would be possible to introduce approximations of the actual costs, for example defining the costs in terms of number of employees, quantity of inputs used, maintenance costs, etc.
On the other hand, within the framework of the economy, the following elements must be analyzed: cost, profit and volume of operations. According to Leturia -2000, these elements represent instruments in the planning, management and control of operations to achieve the comprehensive development of the institution and decision-making regarding the product, prices, determination of benefits, distribution, alternatives to manufacture or acquire inputs, production methods, capital investments, etc. It is the basis for establishing the company's variable budget.
The economic treatment of operations provide useful guidance for profit planning, cost control, and administrative decision-making should not be considered as a precision instrument since the data is based on certain assumed conditions that limit the results. The economical nature of operations is developed under the assumption that the concept of cost variability (fixed and variable) is valid, and these components can be identified, including semi-variable costs; The latter through technical procedures that require a special analysis of the historical data of income and costs for several successive periods, in order to determine the fixed and variable costs.
TRANSPARENCY:
Transparency means the duty of the authorities to carry out their actions publicly, as a mechanism for controlling power and democratic legitimacy of public institutions.
Transparency means letting light easily pass, in government terms, transparency is a quality that allows the adequate and sufficient flow of information and could be considered an antidote to curb corruption, to counteract any type of suspicion or suspicion of a certain dependency. or public body.
Transparency is an environment of trust, security and openness between the government and society, in such a way that responsibilities, procedures and rules are clearly established, carried out and reported and are open to public participation and scrutiny.
Transparency is also a sensible, responsible, and participatory citizenry that, in the knowledge of its rights and obligations, collaborates in promoting integrity and fighting corruption.
4.5. HYPOTHESIS
MAIN HYPOTHESIS
If the comprehensive audit is planned, executed and reported and also considers activities that give added value, such as specialized advice and follow-up of the observations made; Then it will become the effective instrument to verify the economy, efficiency, effectiveness and transparency of the administration of the Cultural Heritage of the Nation that is carried out by the National Institute of Culture.
SECONDARY HYPOTHESES:
- If the comprehensive audit is structured systemically and considers special procedures for the critical areas and points of attention of the Cultural Heritage of the Nation administered by the National Institute of Culture; Then it will contribute to the economy, efficiency, effectiveness and transparency of institutional management.
- If the integral audit carries out the verification of approvals, authorizations, verifications, conciliations, analysis of operations, safeguarding of tangible and intangible assets, segregation of duties and others; Then, it will contribute to the economy, efficiency, effectiveness and transparency of the management of the Cultural Heritage of the Nation by the National Institute of Culture.
VARIABLES OF THE INVESTIGATION
1) INDEPENDENT VARIABLE:
X. COMPREHENSIVE AUDIT
INDICATORS:
X.1. PROCESS
X.2. VALUE ADDED
2) DEPENDENT VARIABLE:
Y. EFFECTIVE INSTITUTIONAL MANAGEMENT.
INDICATORS:
Y.1. ECONOMY AND INSTITUTIONAL EFFICIENCY
Y.2. EFFECTIVENESS AND INSTITUTIONAL TRANSPARENCY
3) INTERVINENT VARIABLE:
Z. NATIONAL INSTITUTE OF CULTURE
INDICATORS:
Z.1. CULTURAL POLICIES
Z.2. ADMINISTRATION OF THE CULTURAL HERITAGE OF THE
NATION
4.6. JUSTIFICATION AND IMPORTANCE OF WORK
JUSTIFICATION
The huaqueo or huaquería is the clandestine excavation in archaeological sites with the purpose of extracting cultural assets. It is an illegal and highly destructive activity that the law punishes. The law indicates that undiscovered cultural assets are part of the Cultural Heritage of the Nation, and those that were discovered in privately owned properties are the property of the State, as it seeks to protect the common past of all Peruvians. The huaqueros steal pieces from us that are episodes from our past. The huaqueros destroy all this valuable information, since they only care about the monetary value of the pieces they find and sell; What they find useless they throw away and destroy. We must bear in mind that when an object is buried and is suddenly brought to the surface, the environment immediately begins to affect it;At first it does it invisibly, but over time, the damage begins to show and is getting worse. That is why archaeologists subject each piece they remove to a conservation treatment. The huaqueros, on the other hand, do not think about the future of the piece; they are only interested in selling it to the highest bidder. These acts can be determined by a comprehensive audit.
The sacrilegious robberies ,that is, robberies and / or thefts carried out in churches, convents, monasteries and places of worship in general. This type of theft is a particularly serious problem in the interior of the country, where churches are stripped of all that constitutes their spiritual and religious heritage. Colonial churches, the objects and cultural assets they contain, mean a very important field of study for researchers, since they not only study the most obvious (who painted or sculpted certain figures, when and how they created them, what they represent, etc.), but also the long relationship that exists between peoples and religion, the way in which their beliefs evolved and developed and how all this is integrated into the lives of the current inhabitants. The sacrilegious thief does not commit a simple robbery or theft:He commits a grave fault against the spirituality and morals of the people. If these acts occur, they can only be determined by the intervention of a comprehensive audit.
Earthquakes, floods, huaycos, torrential rains, as well as other natural phenomena are common in our territory; However, it is not only natural disasters in themselves, but these phenomena have destructive effects when they occur in populated areas, which are not prepared to counteract them. However, if we are adequately prepared, it is possible to reduce or mitigate the damage caused, thus preventing the disaster from being greater and becoming unmanageable. Like modern people and buildings, cultural assets are at risk from these natural disasters, depending on the particular characteristics of the geographical location where they are located.Torrential rains and flooding cause the immediate collapse of significant parts of the adobe and quincha buildings, and can cause total collapse when the damage is not repaired in time. Earthquakes are particularly destructive, as we saw it in Ancash in 1970 and in Arequipa, Moquegua and Tacna in 2001, and the most recent one on August 15, 2007, which affected the entire area of the so-called south of our country. Mere exposure to the elements causes erosion and deterioration in sites, monuments and cultural property not adequately protected. These facts can be adequately determined by the intervention of a comprehensive audit.as we saw it in Ancash in 1970 and in Arequipa, Moquegua and Tacna in 2001 and the most recent one on August 15, 2007 that affected the entire area of the so-called southern region of our country. Mere exposure to the elements causes erosion and deterioration in sites, monuments and cultural property not adequately protected. These facts can be adequately determined by the intervention of a comprehensive audit.as we saw it in Ancash in 1970 and in Arequipa, Moquegua and Tacna in 2001 and the most recent one on August 15, 2007 that affected the entire area of the so-called southern region of our country. Mere exposure to the elements causes erosion and deterioration in sites, monuments and cultural property not adequately protected. These facts can be adequately determined by the intervention of a comprehensive audit.
Vandalism against cultural property takes many forms and may be intentional or not, but the damage they cause can lead to the destruction of the property. -Acts of vandalism, such as paint, inscriptions or the affixing of posters, are harmful forms of expression that make buildings, streets and even hills ugly. But made in a cultural heritage asset, they are usually particularly destructive. The components of modern paints and glues can seriously affect the old building materials of these buildings and inscriptions or scratches can damage buildings forever. Even the stones are spoiled, especially if it is necessary to use a solvent to clean them. On the other hand, these monuments are maintained and cleaned, for the most part, with taxpayer money.Repeating the cleaning over and over again due to vandalism not only implies greater wear and tear on the monument, but also the use of money that could be invested in the conservation of more cultural assets. Invasions are an act of large-scale organized vandalism. Although there is a serious social and economic problem related to homelessness in Peru, invading an archaeological site will not solve this situation. The pre-Hispanic cultural assets that make up the cultural heritage of the Nation, discovered in private property, are the property of the State, that is, of all Peruvians, and when people invade them, they destroy all the patrimonial evidence, stealing history from the country. This common property contains a large number of archaeological remains,so that it is not a matter of free land for the disposition of everyone, but rather constitutes the common heritage of all Peruvians. The occupation of archaeological sites is prohibited by law, constituting the crime of usurpation. It is always necessary to fix a perimeter or protected area around the site or monument, to guarantee its defense. The comprehensive audit will determine if the INC is capable of protecting the nation's cultural heritage.The comprehensive audit will determine if the INC is capable of protecting the nation's cultural heritage.The comprehensive audit will determine if the INC is capable of protecting the nation's cultural heritage.
Conservation of cultural heritage is not opposed to technological progress or development; On the contrary, scientific advances and innovations allow us to care for and manage our cultural assets in a more efficient way: there are computer programs for managing cultural assets, better methods and techniques for conservation and restoration, and more effective analysis and instruments for the investigation. The intervention of the comprehensive audit will greatly help these purposes.
It is very important to understand that cultural heritage is not the accumulation of "old" places and things, old-fashioned and worthless. Or, on the contrary, that only the "beautiful", of noble material and precious stones have value. Each and every one -even the smallest fragment- of the cultural assets that make up our material and intangible heritage are necessary to understand the past. And the past is important because it gives us examples, experiences and arguments for much of the decisions we make in the present; at the same time, it allows us to create a sense of identity, belonging and one more reason to live and work for our family, our locality, our region, our Nation. A comprehensive audit contributes to all this.
The comprehensive audit will facilitate the mechanisms to overcome the slowness and complexity of the administrative processes and especially to overcome the reigning confusion in the processes, the disorganization, the apathy of the personnel in charge and the counterproductive administrative measures that make the process slow and tortuous in more efficient and agile place.
The comprehensive audit will provide advice for the implementation of modern and efficient government financial management practices, better internal controls and to improve the role of internal control bodies.
Traditional audits have proven to be weak and unable to professionally detect and deal with government fraud and corruption; therefore, the integral audit appears as the alternative to strengthen, modernize and improve the work of the auditors, so that they contribute to fight against these scourges that break the morale of honest workers and especially of the community that contributes to the State.
Undoubtedly, the best contribution that the comprehensive audit team will provide will be the strengthening of the internal control system that exists and that must be strong enough to automatically identify errors, irregularities, illegal acts and, in general, situations that they are against the goals, objectives, mission and institutional vision.
IMPORTANCE
The relevance of this research work lies in the conversion of the passive attitude to an active, protagonist attitude, in defense of the Cultural Heritage of the Nation and the fight against acts of corruption. The importance is also given insofar as it allows postgraduate professionals to have the opportunity to express our opinion on the need to contribute to the economy, efficiency, effectiveness and transparency through the application of an effective instrument such as comprehensive audit.
V. OBJECTIVES
MAIN GOAL
Formulate the policies, criteria and procedures under which the integral audit must be carried out; in such a way that it is an effective instrument to verify the economy, efficiency, effectiveness and transparency of the management of the Cultural Heritage of the Nation carried out by the National Institute of Culture.
SPECIFIC OBJECTIVES:
1. Recommend the process, procedures and added value of the comprehensive audit, as an effective instrument to facilitate institutional management.
2. Recommend the most effective control activities to prevent the lack of economy, deficiency and ineffectiveness, and thus facilitate the rational use of resources and achieve the objectives established in the norms and demanded by the community.
SAW. METHODOLOGY
6.1. KIND OF INVESTIGATION
This research work will be of the basic or pure type, since all aspects are theorized, although its scope will be practical to the extent that the Comprehensive Audit is taken into account as an effective instrument to verify the economy, efficiency, effectiveness and transparency of institutional management.
6.2. INVESTIGATION LEVEL
The research to be carried out will be at the descriptive-explanatory level, since it will describe the policies, criteria, process and procedures of the Comprehensive Audit and will explain how it becomes the effective instrument to verify the economy, efficiency, effectiveness and transparency of the Institutional management.
6.3. INVESTIGATION METHODS
The following methods will be used in this investigation:
1) Descriptive.- Because the process, procedures and report will be described, as well as the advice and follow-up of the comprehensive audit that would be applied to verify the economy, efficiency, effectiveness and transparency of institutional management.
2) Inductive.- To infer the information of the sample in the research population.
6.4. DESIGN OF THE INVESTIGATION
This work includes the methodological approach and theoretical approach of the investigation.
The methodological approach highlights the formulation of research problems, objectives and hypotheses.
In the theoretical approach, the development of the variables and indicators of the research in relation to the problems, objectives and hypotheses formulated stands out.
At the end of the research work, first the specific objectives will be contrasted with the general objective of the research.
The contrasted specific objectives will be the basis for issuing the partial conclusions of the investigation.
The partial conclusions will be the basis for issuing the general conclusion of the work.
Finally, an interrelation will be established between the general objective and the general conclusion until the general hypothesis of the investigation is contrasted.
6.5 POPULATION OF THE INVESTIGATION
The research population is made up of the authorities, officials and workers of the National Institute of Culture; The staff of the Office of the Comptroller General of the Republic, the staff of the Audit Societies and the teaching staff of the Audit Subject of Public and Private Universities will also be taken into account.
6.6 SAMPLE OF THE INVESTIGATION
Formula to determine the sample size:
To define the sample size, the probabilistic method has been used and the formula provided by the Inter-American Development Association AID has been applied.
Where:
| n | It is the size of the sample to be taken into account for the field work. It is the variable that you want to determine. |
| P and q | They represent the probability of the population to be included or not in the sample. According to the doctrine, when this probability is not known from statistical studies, it is assumed that p and q have a value of 0.5 each. |
| Z | Represents the standard deviation units that in the normal curve define an error probability = 0.05, which is equivalent to a 95% confidence interval in the sample estimate, therefore the Z value = 1.96 |
| N | The total population. This case 620 people. |
| EE | Represents the standard error of the estimate, according to the doctrine, it must be 0.09 or less. In this case 0.09 has been taken |
Substituting:
n = (0.5 x 0.5 x (1.96) 2 x 620) / (((0.09) 2 x 619) + (0.5 x 0.5 x (1.96) 2))
n = 100
COMPOSITION OF THE INVESTIGATION SAMPLE:
| Institutions | DIR | FUN | TRA | DOC | TOT. |
| INC. | 6 | 10 | fifty | 0 | 66 |
| Comptroller | 0 | 0 | 10 | 0 | 10 |
| Audit Companies | 0 | 0 | 10 | 0 | 10 |
| Teachers | 0 | 0 | 0 | 14 | 14 |
| TOTAL | 06 | 10 | 70 | 14 | 100 |
NOTE:
DIR: Directors
FUN: Officials
TRA: Workers
DOC: Teachers
6.7. DATA COLLECTION TECHNIQUES
The techniques that will be used in the investigation will be the following:
1) Interviews.- This technique will be applied to the authorities and officials of the National Institute of Culture, in order to obtain information on all aspects related to the investigation.
2) Surveys.- Workers from the National Institute of Culture, the Office of the Comptroller General of the Republic and Teachers from Public and Private Universities will be applied, in order to obtain information on aspects related to the investigation
3) Documentary analysis.- This technique will be used to analyze the norms, bibliographic information and other aspects related to the investigation.
6.8 DATA COLLECTION INSTRUMENTS.
The instruments to be used in the research are related to the aforementioned techniques, as follows:
| TECHNIQUE | INSTRUMENT |
| INTERVIEW | INTERVIEW GUIDE |
| POLL | QUESTIONNAIRE |
| DOCUMENTARY ANALYSIS | DOCUMENTARY ANALYSIS GUIDE |
6.9. ANALYSIS TECHNIQUES
The following techniques will be applied:
· Documentary analysis
- Inquiry
· Data reconciliation
· Tabulation of tables with quantities and percentages
- Graphics understanding
6.10. DATA PROCESSING TECHNIQUES
The following data processing techniques will be applied:
· Sorting and classification
· Manual registration
· Computerized process with Excel
· Computerized process with SPSS
VII. TENTATIVE SCHEME OF THE THESIS
TITLE OF THE THESIS
AUTHOR'S NAME
INTRODUCTION
CHAPTER I:
METHODOLOGICAL APPROACH
1.1. Bibliographic Background
1.2. Approach to the opportunity or problem
1.2.1. Description of the problematic reality
1.2.2. Main problem
1.2.3. Secondary problems
1.2.4. Delimitation of the investigation
1.3. Justification and Importance
1.3.1. Justification
1.3.2. Importance
1.4. goals
1.4.1. Main goal
1.4.2. Specific objectives
1.5. Hypothesis
1.5.1. Main hypothesis
1.5.2. Secondary hypotheses
1.6. Methodology
1.6.1. Kind of investigation
1.6.2. Research level
1.6.3. Research methods
1.6.4. Design of the investigation
1.6.5. Population and sample
1.6.6. Techniques and instruments
CHAPTER II:
THEORETICAL APPROACH
2.1. Research Background
2.2. Historical review
2.3. Legal basis of the investigation
2.4. Conceptual framework
CHAPTER III:
RESULTS OF THE INVESTIGATION
3.1. Presentation, analysis and interpretation of the interview
3.2. Presentation, analysis and interpretation of the survey
3.3. Target Verification
3.4. Hypothesis testing
3.5. Conclusions
3.6. recommendations
BIBLIOGRAPHY
ANNEXES
VIII. SCHEDULE
| ACTIVITIES | AUG | SET | OCT | NOV | DEC | JAN | FEB |
| THESIS PLAN: | |||||||
| COLLECTION OF
DATA |
X | ||||||
| FORMULATION | X | ||||||
| PRESENTATION | X | ||||||
| APPROVAL | X | ||||||
| THESIS: | |||||||
| RECOPILATION OF
DATA |
X | X | X | X | |||
| ORGANIZATION OF
INFORMATION |
X | X | X | ||||
| PROCESS OF
INFORMATION |
X | X | |||||
| DRAFTING OF
THESIS |
X | ||||||
| PRESENTATION | X | ||||||
| LIFT | X | ||||||
| APPROVAL | X |
IX. FINANCING
| FINANCING OF HUMAN RESOURCES AND MATERIALS | |||||
| ITEMS | QUANTITY | UNIT | UNIT PRICE | SUBTOTAL | TOTAL ITEM |
| I. ASSETS: | 770.00 | ||||
| GOODS | 4 | THOUSAND | 25 | 100.00 | |
| PENCILS | 5 | DOZENS | 10 | 50.00 | |
| COMPUTER INK | 10 | UNITS | 30 | 300.00 | |
| FLOPPY | 3 | DOZEN | twenty | 60.00 | |
| CD | one | DOZEN | 60 | 60.00 | |
| OTHER ASSETS | 200.00 | ||||
| II. SERVICES | 2,480.00 | ||||
| SUPPORT STATISTICAL WORK | 500.00 | ||||
| SECRETARIAL SUPPORT | 500.00 | ||||
| MOBILITY | 300.00 | ||||
| VIATICAL | 500.00 | ||||
| TELEPHONE | 200.00 | ||||
| IMPRESSIONS | 180.00 | ||||
| PHOTOCOPY | 100.00 | ||||
| VARIOUS | 200.00 | ||||
| TOTAL | 3,250.00 | ||||
X. BIBLIOGRAPHY
1. ARENS, Alvin A. & LOEBBECKE james K. (2000) “Auditing an Integral Approach. Bogota Colombia. Editorial Norma.
2. BLANCO LUNA, Yanel. (2001) Conceptual Framework for Comprehensive Auditing. Bogota Colombia. XXIII Inter-American Accounting Conference
3. BRAVO CERVANTES, Miguel H. (2000) Comprehensive Audit. Lime. FECAT Editorial.
4. CANEVARO, Nicolás (2004) Comprehensive Audit. Lime. National Control School.
5. CONTRERAS, E. (1995) Auditor's Manual. Lima: CONCYTEC
6. CASHIN, JA, NEUWIRTH PD and LEVY JF (1998) Audit Manual. Madrid: Mc. Graw-Hill Inc
7. PUBLICSO COLLEGE OF ACCOUNTANTS OF LIMA (1992) Magazine: “Fraud and Corruption enemies of development”. Lima Peru. It is a publication of the CCPL.
8. COMPTROLLER GENERAL OF THE REPUBLIC. (1998) Government Audit Manual (MAGU). Lima: Editora Perú.
9. OFFICE OF THE COMPTROLLER GENERAL OF THE REPUBLIC. (1998) Government Auditing Standards (NAGUS). Lima: Editora Perú.
10. COMPTROLLER GENERAL OF THE REPUBLIC. (1998). Internal Control Technical Standards for the Public Sector. Lime. Editora Peru.
11. ELORREAGA MONTENEGRO, Gorostiaga. (2002). Internal Audit Course. Chiclayo- Peru. Editing by the author.
12. INTERNATIONAL FEDERATION OF ACCOUNTANTS- IFAC - (2000) International Standards on Auditing. Lime. Edited by the Federation of Colleges of Accountants of Peru.
13. HERNÁNDEZ V., Jaime (2002) "The Comprehensive Audit: A true Archetype of business control" Bogotá Colombia. Editorial Norma.
14. HERNÁNDEZ RODRÍGUEZ, Fernando (1998) The operational audit. Lima: Editorial San Marcos SA.
15. HOLMES, AW (1999) Audit. Mexico: Hispano-American Typographical Union.
16. BUSTAMANTE KNIGHT INFORMATION (Audit Informational). (2002). Internal control. Lime. Editorial Tinco SA.
17. INSTITUTO AUDITORES INTERNOS DE ESPAÑA- Coopers & Lybrand, SA. (1997). The new concepts of internal control- COSO Report- Madrid. Ediciones Díaz de Santos SA.
18. INSTITUTE OF INTERNAL AUDITORS OF PERU. (2001). The new framework for the professional practice of internal audit and code of ethics. Lime. Edition by The Institute of Internal Auditors.
19. CANADIAN INSTITUTE OF CERTIFIED ACCOUNTANTS (CICA). (2001). Coco internal control model. Lime. Edition by Normaria- Argentina.
20. JOHNSON, Gerry and SCHOLES, Kevan. (1999) Strategic Management. Madrid: Prentice May International Ltd.
21. PINILLA FORERO, José Dagoberto (2000) Audit of systems in operation. Lima Peru. FECAT Editorial.
22. PANÉZ MEZA, Julio. (1986) Contemporary Audit. Lima: Iberoamericana de Editores SA.
23. PORTER Michael E. (1996) Competitive Strategy. Mexico. Compañía Editorial Continental SA. From CV.
24. PORTER Michael E. (1996) Competitive advantage. Mexico. Compañía Editorial Continental SA. From CV.
25. TERRY, George R. (1995) Principles of Management. Mexico: Compañía Editorial Continental SA.
26. TUESTA RIQUELME, Yolanda. (2000). "The ABC of Government Auditing". Lime. Iberoamericana de Editores SA.
27. VALLEJOS AGREDA, Oswaldo (2004) Comprehensive Quality Audit in Risk Assessment and Classification in the Financial System. Lime. College of Public Accountants of Lima.
Canevaro Bocanegra Nicolás (2004) Comprehensive Audit. Lime. Course taught at the National Control School of the General Comptroller of the Republic.
Hernández V. Jaime (2002) The Comprehensive Audit: A true archetype of business control. Bogota Colombia. Editorial San Marcos SA.
Ibid.
Bravo Cervantes, Miguel (2000) Comprehensive Audit. Lime. FECAT Editorial. Blanco Luna Yanel (2001) Conceptual framework of the Integral Audit. Bogota Colombia. XXIII Inter-American Conference on Accounting.
Committee of Sponsoring Organization of the Treadway Commission (COSO)
Hernández Rodríguez, Figueroa. (2000) The operational audit. Lima: Editorial San Marcos SA.
Government Audit Manual. Published by the Comptroller General of the Republic.
. Johnson and Scholes (2000): Strategic Management. Prentice Hall International Ltd.
. Management Development Institute: Study module: Management, competitiveness and quality.
. Salvat / Uno Encyclopedic Dictionary Edition 2000
Koontz & O´Donnell (1999). Modern Administration Course. Mexico.
Leturia Podestá, Carlos (2000) Cost-Volume-Profitability. Lime. Editing by the author.
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